North Carolina Real Property Definition: Land, Fixtures, and Rights

In North Carolina, real property is a comprehensive legal concept defined by statute (N.C.G.S. § 105-164.3) and centuries of common law. It encompasses far more than "land and buildings."

Statutory Definition (N.C.G.S. § 105-164.3)

"Real property" includes every estate, interest, right, or benefit in, to, or over land, including without limitation:

• Title to land
• Buildings and structures on or in the land
• Mineral rights (oil, gas, coal, hard rock, geothermal)
• Water rights (riparian, appropriative, groundwater)
• Air rights (development rights, view easements, drone corridors)
• Easements (affirmative, negative, prescriptive, conservation)
• Profits à prendre (right to take soil, timber, minerals, game)
• Liens arising by operation of law (mechanics', tax, judgment liens)

Key Components in Practice

Fixtures (Doctrine of Annexation) — Personal property becomes real property when affixed with intent of permanence. NC courts apply three-part test:

1. Actual annexation (physical attachment)
2. Adaptation to the realty's use
3. Intent of the annexor (objective: would reasonable person intend permanence?)

Examples: Built-in cabinets, HVAC, plumbing, lighting, security systems = fixtures. Refrigerator, washer, drapes = usually personalty (unless built-in).

Manufactured Homes — Titled as personal property (DMV) unless affixed to owned land + affidavit filed + wheels/axles removed = converted to real property (N.C.G.S. § 47-20.6).

Leasehold Interests — Long-term leases (>15 years) often treated as real property for tax/financing; short leases = personal property.

Life Estates, Remainders, Executory Interests — Future interests in land are real property.

Tax Implications

• Property tax (ad valorem): Real property taxed annually by county; personal property (business) listed separately
• Deed recording: Real property transfers require deed + excise tax ($2/$1000) + recording
• Homestead exclusion: $25K/$37.5K (age/disability) off assessed value for primary residence

NC's definition is expansive by design — capturing the full bundle of rights that make land valuable.